Online vehicle auction company Copart (NASDAQ:CPRT) will be announcing earnings results this Thursday after market close. Here’s what you need to know.
Copart missed analysts’ revenue expectations last quarter, reporting revenues of $1.12 billion, down 3.6% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.
Is Copart a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Copart’s revenue to decline 2.1% year on year, a reversal from the 7.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Copart has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Copart’s peers in the business services & supplies segment, some have already reported their Q1 results, giving us a hint as to what we can expect. OPENLANE delivered year-on-year revenue growth of 14.7%, beating analysts’ expectations by 7.2%, and RB Global reported revenues up 11.4%, topping estimates by 6.9%. OPENLANE traded up 12.1% following the results while RB Global was also up 1.4%.
Read our full analysis of OPENLANE’s results here and RB Global’s results here.
Investors in the business services & supplies segment have had fairly steady hands going into earnings, with share prices down 2% on average over the last month. Copart is down 1.5% during the same time and is heading into earnings with an average analyst price target of $42.44 (compared to the current share price of $33.24).
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